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Travelers Resumes Share Buybacks, Pegs Sandy Net Loss at $650M

A damaged house is seen after Hurricane Sandy passed through in the greatly affected community of Atlantique on Fire Island, New York October 30, 2012. Millions of people were left reeling in the aftermath of the whipping winds and heavy rains of the ...
massive storm Sandy on Tuesday as New York City and many parts of the eastern U.S. struggled with epic flooding and extensive power outages. REUTERS/Lucas Jackson (UNITED STATES - Tags: ENVIRONMENT DISASTER)
(Reuters)

Travelers said this preliminary estimate is based on an analysis of current and projected future claims, estimated values of properties in the impacted areas, estimates of wind and some flood damage and other factors.

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Due to the complexity of the situation and the enormous scope of the storm, Travelers warned that future estimates of losses and the actual final losses “may be materially different from this current estimate.”

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Still, the loss-estimate allows Travelers to resume its share repurchase plan, which had been halted in the aftermath of Sandy as the company sought to assess the extent of its exposure.

Wall Street cheered the news, bidding Travelers up 3.01% to $72.65 in recent trading. The rally leaves the stock up almost 23% on the year, compared with a 12% gain for the S&P 500.